Coupling FI and property business

NAZA Group CEO SM Nasarudin SM Nasimuddin was at the Paddock Club in Singapore for the Singapore F1 race. He is a partner in the newly established 1Malaysia F1 Sdn Bhd (1MF1T) and spoke to journalists on why he is getting into the business of F1, below are excerpts of the interview.

Q: Why are you in 1MF1T?

Nasarudin: It is everyone’s dream to be in the F1 business.

My late father, Tan Sri SM Nasimuddin, was also interested and when the opportunity came, we did not resist.

Q: Are you or the Naza Group investing in 1MF1T?

A: It is my personal investment. This investment is also for a brand building for our property business. We would like to launch more property projects to sell globally.

Q: Are you going to fork out your own money for this F1 venture?

A: Yes, hopefully it will be minimal and we want to get sponsors to minimise our investment.

Q: Is this a diversification since AP (approved permits) will be phased out?

A: My dad had already positioned the Naza Group business beyond the AP business.

Q: Is there any synergy between the Naza Group and 1MF1T?

A: We have a large (customer) base (that may also be interested in F1). I am another racing fan.

Q: Will you be involved in the day-to-day running of 1MF1T?

A: We leave that to the professional team.

Q: When do you see returns on your investment?

A: It is a personal investment and we see good returns on this venture even though there are risks involved.

It will also be a good leverage for our property business as we intend to launch our property projects globally.

Even though our Platinum project is sold out, we will embark on Phase 2 where there will be hotels and other developments.

Q: What do you see as the biggest risk for 1MF1T?

A: We have to do it well. The risk is if we do not perform but with the right people, it would be successful.

On Kumpulan Jetson Bhd (KJB)

Q: Will Naza be injecting its property business into KJB, for which you are currently undertaking a mandatory general offer (MGO)?

A: We earlier had plans to list our property arm, Naza TTDI Sdn Bhd. Then we put it on hold, but now we have no plans to list it.

KJB will not be a property company and we will not inject our property business into KJB. We have other plans for KJB.

(Nasarudin and his brother SM Faliq are undertaking a MGO for KJB via Superior Pavillion Sdn Bhd and Odyssey Wealth Sdn Bhd in which they have substantial interest. They made a revised price offer of RM1 for KJB shares and 93 sen for the irredeemable convertible unsecured loan stocks (Iculs). The original offer prices for the shares and Iculs were 70 sen and 65 sen respectively.)

Q: What is rationale for getting into KJB?

A: We have a property arm and we are interested to get into the construction business. KJB has expertise in construction and we want to build it into the biggest construction company so that we can go and bid for projects globally. KJB will be a construction play.

Q: Will you change the name of KJB?

A: We will maintain it for now but will have to re-brand it later.

Q: Why KJB?

A: It is listed, and has the right expertise and management team.

Q: Will you change the team and the way things are done at KJB?

A: We will maintain the status quo.

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